Caesars Entertainment Reports Q1 2022 Results
Caesars Entertainment’s Las Vegas operations are booming. In the first quarter of 2022, the gaming giant reported record revenues. In the times ahead, the outlook remains solid.
The company’s GGAP net revenues came to $2.3bn. Compared to the same period last year when the revenues were $1.8bn, this is representative of a better outcome. In 2022, the GAAP net loss stands at $680m. In 2021, the GAAP net loss in the same year stood at $423m.
Popularity-wise, Caesars is a recognizable name in the iGaming industry, and the brand often finds itself on the list of the best casinos in the USA. Those interested in free spins can take advantage of the Caesars online casino promo code.
As for the same-store adjusted EBITDA minus the company’s Caesars Digital segment, the numbers came in at $850m. In the same period last year, the numbers stood at $530m.
According to Tom Reeg, CEO of Caesars Entertainment, the company’s Q1 results reflect a sequential improvement in revenue and EBITDA for each month in 2022. Their Las Vegas department posted an all-time EBITDA record in Q1, and Caesars officials are confident the rest of the year will yield a great business outcome.
On March 31, 2022, an overview of Caesars’ debt outstanding revealed $14.3bn in aggregate principal amount. Counting out the $451m of restricted cash, their total cash equivalents totaled $814m.
According to Bret Yunker, CFO at Caesars, the company is pleased with the performance of its properties that have exceeded all expectations. For 2022, the company officials anticipate a debt reduction due to expected asset sale proceeds and a solid operating cash flow.
Anthony Carano, COO at Caesars, added that the Q1 adjusted EBITDA (excluding Caesars Digital) was $850m. Compared to the same time period in 2021, this makes more than a 60% increase.
Despite the measures taken to curb the spread of the pandemic in January, the margins on the brick-and-mortar side of the business equaled 36.2%. Caesar’s Las Vegas segment reached record-breaking adjusted EBITDA in Q1, overcoming several obstacles.
In concrete numbers, 18 of Caesar’s properties had a record high EBITDA in Q1, while 28 had a record high EBITDA margin.
In Q1, the total occupancy was 83% (77% during the midweek). From April and onward, there are no longer any occupancy caps in Las Vegas, which makes it reasonable to expect an improvement in occupancy in Q2.
During Q1, group room nights amounted to approximately 13% of the occupied room nights in Las Vegas. Compared to the second half of 2021, this makes for an 11% increase, despite the adverse effects of the pandemic on the industry.
With the situation gradually improving, so is the convention demand. The new Caesars Forum Convention Center already has 150 events booked well into the future, with projected revenue of over 500 million and 1.3 million room nights.
In Q1, Caesars concentrated its efforts on growing the digital side of the business through acquiring new customers, focusing on new markets such as Louisiana and New York.
Although the company officials claim their customer acquisition campaigns exceeded their expectations (particularly in Louisiana and New York), the cheer was offset by the campaigns’ negative impact on net revenue due to the funds that went into promotional investment in support of the new market launches.
Nevertheless, Caesars Entertainment has a positive outlook for 2022, citing a solid pattern of consumer trends. The same can be said for Las Vegas’ group and convention trends, not to mention the full expected recovery of older consumer demographics and anyone impacted by the anti-covid measures.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes